Writing for The Times, prize-winning journalist Matt Ridley argues that “Europe must embrace free enterprise”, as European economic growth rates continue to stagnate.

Describing the eurozone as “flat and teetering on the brink of debilitating deflation”, Matt demonstrates that public spending and dirigisme to stimulate growth does not work, while the “Anglo-Saxon” model of economic management – through open markets and deregulation – has proven to unleash growth.

Matt explains that “as figures from the Organisation for Economic Co-operation and Development confirm, a 10 per cent increase in public spending produces a 0.5-1 per cent decrease in growth rates. The encouragement of free enterprise is what has always brought growth, from ancient Phoenicia to modern Mauritius, from Renaissance Italy to Silicon Valley.”

He goes on to say that “Entire continents teach the same lesson. South America and now Africa have both confirmed the hypothesis that state-directed commerce leads to stagnation while free enterprise causes rapid growth.”